Kenya is seeking to move beyond exporting raw and low-value commodities as the government pushes for greater value addition, local manufacturing, technology transfer and investment.
Prime Cabinet Secretary and Foreign and Diaspora Affairs Cabinet Secretary Musalia Mudavadi said the country is positioning itself as a manufacturing base and digital launchpad as it seeks to deepen its participation in regional and global markets.
Speaking during a diplomatic briefing in Nairobi on Thursday, Mudavadi said Kenya’s growing international partnerships should translate into higher-value exports, expanded trade and investment and stronger domestic production.
“Like many countries across the continent, we are building on our growing partnerships to diversify and increase value-added exports, expand trade and investments, facilitate technology transfer, advance the digital economy and strengthen local manufacturing,” Mudavadi said.
Why Kenya wants more value from exports
The government’s approach is aimed at increasing the economic value generated before Kenyan products reach international markets.
Rather than relying heavily on the export of raw materials, the strategy places greater emphasis on processing, manufacturing and technology-driven production.
Mudavadi said international partnerships would remain important in supporting technology transfer and investment across key sectors.
The government has also established investment vehicles, including the Kenya Development Corporation and the National Infrastructure Fund, as part of efforts to strengthen domestic investment capacity.
Foreign investors face compliance requirements
Mudavadi also stressed that Kenya remains open to foreign investors and traders, but said those operating in the country must comply with existing laws.
Foreign nationals seeking to conduct business will be required to meet immigration, work-permit, registration and licensing requirements.
The position reflects the government’s broader effort to attract international capital while ensuring that foreign participation in the economy operates within Kenya’s regulatory framework.
Economy shows stronger growth
Mudavadi also presented an upbeat assessment of Kenya’s economic performance.
He cited real GDP growth of 5.3 per cent in the first quarter of 2026, compared with 4.9 per cent during the corresponding period in 2025. The Kenya National Bureau of Statistics has separately confirmed 5.3 per cent real GDP growth for the quarter.
Mudavadi further said foreign exchange reserves stood at about US$14.9 billion in August, equivalent to 6.2 months of import cover.
He also pointed to developments at the Nairobi Securities Exchange, where market capitalisation had crossed the KSh4 trillion mark.
“Kenya’s economy continues to demonstrate resilience,” Mudavadi said, citing the growth figures and stability of the shilling.
Food production remains a concern
Despite the positive economic outlook, Mudavadi warned that below-average rainfall could create pressure on food production.
He said crop failures in major cereal-producing areas could reduce food production by between 30 and 40 per cent this year.
The government has responded by reducing the subsidised price of fertiliser to KSh2,000 for a 50-kilogramme bag and covering half the cost of certified maize seed.
Mudavadi said the government could also turn to maize imports if necessary to prevent shortages, maintain market supplies and limit excessive price increases.
Diaspora investment remains part of strategy
The government is also seeking to use Kenya’s diaspora as a source of investment, skills and economic links.
Mudavadi said efforts are being strengthened around diaspora investment, labour mobility, recognition of professional qualifications and access to consular services.
Kenya is also scheduled to host the inaugural Global Trust Summit in Nairobi on October 22–23, followed by a diplomatic conference on privileges and immunities from November 23–24.
The government hopes the broader strategy will position Kenya not simply as a consumer market, but as a production, manufacturing, investment and digital hub for the wider region.
